Guest Post: How to be profitable with less than $20,000 in marketing per game

Editor’s note: The following article comes from Sridhar Muppidi, CEO of mobile social developer YesGnome, and offers advice to smaller developers on how their social/mobile titles can still be profitable even without massive marketing spends to drive them up the charts. YesGnome develops games for iOS and Android devices, specializing in city-builder, RPG and strategy titles. The company’s first success is the folklore-inspired city builder FairyTale City, and it recently developed Madagascar – Join the Circus. The studio’s titles are supported by the proprietary SocialKinesis back-end web service, allowing it to control the game experience dynamically in real time.

Even though we haven’t spent millions in marketing and our games haven’t hit the top charts more than briefly, YesGnome is still a profitable company.

One of our first games, FairyTale City, has hit the top charts only briefly, and has not been wildly popular, but we consider it a success for a simple reason: on a month to month basis, it makes significantly more money than we spend on it.

This does not mean that we are seeing dramatically high Lifetime value (LTV). In general, our games on iOS make around $1 on a 90-day average revenue per user. True, this is not even close to what some of the top mid-core developers are seeing, but when you do the math, these numbers still make us very profitable. This article is an attempt to demonstrate how to be a successful and profitable social games developer even with average revenue per daily active user in the range of $0.06 to $0.08.

Read the rest of the article on our sister site Inside Social Games.